Europe’s largest asset manager sees “tipping point” on climate
The world’s deepest-pocketed investors are starting to take climate change seriously, according to Amundi SA. “We are really observing a tipping point among the institutional investors on climate change,” said Frederic Samama, co-head of institutional clients at the Paris-based firm. “Until recently, that question was not on their radar screen. It’s changing, and it’s changing super fast.” Risks from global warming range from damage to physical assets from extreme weather to falling prices on fossil fuel-related assets, as the world moves away from burning coal and oil. According to Amundi, one reason why institutional investors’ views are evolving is the availability of green financial instruments. This is in addition to changes in rules for asset owners that include France making it mandatory for investors to disclose the carbon footprint of their portfolios. (Bloomberg)
Report: Two-thirds of G20 member states are engaged with TCFD recommendations
Approximately two-thirds of G20 member states have actively engaged with the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD), set up by Bank of England governor Mark Carney, according to new research published by the Cambridge Institute for Sustainability Leadership. The report, Sailing from different harbours: G20 approaches to implementing the recommendations of the Task Force on Climate-related Financial Disclosures, reviews the progress made by the national regulatory agencies of G20 members in making the recommendations relevant to their national contexts. Subsequent key findings include that Australia, Canada, the EU, Italy, Japan, South Africa, Turkey and the United Kingdom have conducted (or are currently conducting) consultations with the private sector on sustainable finance generally and on disclosure requirements as an important building block of sustainable finance more specifically. It also highlights France’s Article 173 that, whilst predating the TCFD, is broadly aligned with the TCFD requirements and provides a mandatory disclosure framework. (Cambridge Institute for Sustainability Leadership)
Read more: See Corporate Citizenship’s Briefing Note on the TCFD recommendations here.
Corporate Reputation
ANZ Bank faces criminal cartel prosecution
ANZ Bank, Deutsche Bank and Citigroup expect to face criminal charges over alleged cartel behaviour in a AU$2.5 billion share sale, in an explosive development triggered by an investigation by the competition watchdog. In another blow to the banking industry’s battered reputation, ANZ revealed the Commonwealth Director of Public Prosecutions planned to take action against it for being “knowingly concerned in alleged cartel conduct” in relation to the share offer to institutional investors in August 2015. The Australian Competition and Consumer Commission confirmed the CDPP was expected to lay criminal charges against the three banks and “a number of other individuals”. Companies face maximum penalties of 10 per cent of annual turnover, or three times the benefit gained from criminal cartel behaviour, while individuals can face up to 10 years’ jail if they are found guilty. ANZ said it believed it had acted in accordance with the law and intended to defend itself. Deutsche Bank and Citigroup also said they would defend the criminal charges “vigorously”. (Sydney Morning Herald)
Supply Chain
Report: Antibiotic supply chains are putting basic health at risk
The Access to Medicine Foundation warns in a new white paper, Shortages, stockouts and scarcity: the issues facing the security of antibiotic supply and the role of pharmaceutical companies, that antibiotic supply chains are on the brink of collapse and subsequently are putting basic healthcare at risk. “Antibiotic shortages are occurring because the antibiotics market just doesn’t work well enough. Pharma companies need to be incentivised to keep producing antibiotics. There is definitely no easy fix. But without a global push to address the systemic causes, we risk being unable to treat common infections,” says Jayasree K. Iyer, Executive Director of the Access to Medicine Foundation. Outlining the complexities of antibiotic supply chains that have resulted in little alignment between levels of supply and demand of antibiotics, the white paper highlights the responsibility of governments, supported by regulators and the industry, to ensure reliable access to affordable and quality assured antibiotics. (Access to Medicine Foundation)
Policy
Chile adopts new law to ban the use of plastic bags
Chile has approved a bill that will see plastic bags banned across the country. The country’s Chamber of Deputies voted in the law which will apply to all major retailers within a year, and smaller businesses in two. According to national newspaper La Tercera, the bill passed by 134 votes to one abstention. While the original bill was meant to only cover the Patagonian region in the south of the country, it was later extended to the entire nation. According to the government, there are already 78 communes in the country which have measures in place to regulate the use of plastic bags. Municipalities will also be in charge of implementing the new law, which comes with a possible fine of up to $230,000 for offenders. The move on the national level makes Chile the first country in Latin America to approve such an outright ban, but follows similar efforts around the world. (Climate Action Programme)
Events
UK Social Mobility Awards
UK companies now have less than one month to submit their application to be considered for the UK Social Mobility Awards, with nominations closing on the 29th June 2018. The UK Social Mobility Awards recognise & celebrate the achievements of businesses and organisations across the country in their work of advancing social mobility. There are 10 award categories, 4 individual and 6 business/organisation, selected to focus on those areas where a real difference can be made by taking the right actions.The winners will be announced at a gala dinner which will be held at the London Marriott Hotel Grosvenor Square at 6.30pm on October 18th 2018.
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